Finance Act, 1993

Finance Act, 1993 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1993 Finance Act, 1993 Finance Act, 1993 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 13 of 1993 FINANCE ACT, 1993 ARRANGEMENT OF SECTIONS

PART I

Income Tax, Income Levy, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax Section

Section 1

Amendment of provisions relating to exemption from income tax.

Section 2

Alteration of rates of income tax.

Section 3

Personal reliefs.

Section 4

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

Section 5

Amendment of provisions relating to relief in respect of interest.

Section 6

Amendment of section 11 (restriction of relief to individuals on loans applied in acquiring shares in companies) of Finance Act, 1990.

Section 7

Tax treatment of certain severance payments.

Section 8

Reliefs in respect of tax charged on payments on retirement, etc.

Chapter II

Income Levy

Section 9

Application of section 16 (income levy) of Finance Act, 1983, for 1993-94.

Chapter III

Taxation of Married Persons

Section 10

Taxation of married persons.

Chapter IV

Taxation of Savings and Investment

Section 11

Amendment of Part III (special classes of companies) of Corporation Tax Act, 1976.

Section 12

Life assurance companies: transitional provisions.

Section 13

Special investment schemes.

Section 14

Special portfolio investment accounts.

Section 15

Amendment of provisions relating to interest payments by certain deposit takers.

Section 16

Limits to special investments.

Section 17

Undertakings for collective investment.

Section 18

Taxation of unit holders in undertakings for collective investment.

Section 19

Amendment of section 31 (unit trusts) of the Capital Gains Tax Act, 1975.

Section 20

Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

Section 21

Life assurance companies: amendment of section 29 (taxation of income deemed to arise on certain sales of securities) of Finance Act, 1984.

Section 22

Life assurance companies: amendment of section 16 (relief for trading losses other than terminal losses) of Corporation Tax Act, 1976.

Section 23

Amendment of section 33A (acquisition expenses) of Corporation Tax Act, 1976.

Section 24

Foreign life assurance and deferred annuities: taxation and returns.

Chapter V

Investment Incentive Schemes

Section 25

Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984.

Section 26

Amendment of section 12 (relief for new shares purchased on issue by employees) of Finance Act, 1986.

Section 27

Relief for individuals on certain reinvestment.

Chapter VI

Income Tax, Corporation Tax and Capital Gains Tax

Section 28

Farming: amendment of provisions relating to relief in respect of increase in stock values.

Section 29

Application of section 19 (relief for expenditure on significant buildings) of Finance Act, 1982.

Section 30

Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986.

Section 31

Amendment of section 4 (relief for expenditure on certain buildings in designated areas) of Finance Act, 1989.

Section 32

Amendment of Chapter VII (Urban Renewal: Temple Bar and Other Areas) of Part I of Finance Act, 1991.

Section 33

Amendment of section 51 (application of certain allowances in relation to certain areas and certain expenditure) of Finance Act, 1988.

Section 34

Capital allowances: treatment of grants, etc.

Section 35

Transfer of shares held by certain societies to members of society.

Section 36

Amendment of section 56 (taxation of shares issued in lieu of cash dividends) of Finance Act, 1974.

Section 37

Údarás na Gaeltachta and small enterprise grants.

Section 38

Market Development Fund and Employment Subsidy Scheme.

Chapter VII

Corporation Tax

Section 39

Amendment of section 6 (general scheme of corporation tax) of Corporation Tax Act, 1976.

Section 40

Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

Section 41

Amendment of section 50 (returns and collection of advance corporation tax) of Finance Act, 1983.

Section 42

Amendment of section 1 (introduction for companies of corporation tax in place of income tax, corporation profits tax and capital gains tax) of Corporation Tax Act, 1976.

Section 43

Cesser of section 337 (savings banks) of Income Tax Act, 1967.

Section 44

Amendment of section 39 (meaning of “goods”) of Finance Act, 1980.

Section 45

Amendment of section 84A (limitation on meaning of “distribution”) of Corporation Tax Act, 1976.

Section 46

Tax credit for recipients of certain distributions.

Section 47

Taxation of certain foreign currency transactions.

Section 48

Amendment of section 35 (relief for investment in films) of Finance Act, 1987.

Section 49

Tax treatment of foreign trusts.

Section 50

Amendment of section 10A (restriction of certain charges on income) of Corporation Tax Act, 1976.

Section 51

Gifts to First Step.

PART II

Customs and Excise

Chapter I

Registration and Taxation of Vehicles

Section 52

“Act of 1992” (Chapter I).

Section 53

Amendment of section 130 (interpretation) of Act of 1992.

Section 54

Amendment of section 134 (permanent reliefs) of Act of 1992.

Section 55

Amendment of section 136 (authorisation of manufacturers, distributors and dealers and periodic payment of duty) of Act of 1992.

Section 56

Amendment of section 141 (regulations) of Act of 1992.

Chapter II

Excise Duties on, and Licensing of, Vehicles

Section 57

Interpretation (Chapter II).

Section 58

Regulations.

Section 59

Extension of powers of licensing authorities in relation to grant of certain licences.

Section 60

Records.

Section 61

Evidence.

Section 62

Miscellaneous.

Section 63

Amendment of certain provisions relating to penalties for offences in relation to licensing and registration of vehicles.

Section 64

Amendment of the Act of 1920.

CHAPTER III

Miscellaneous

Section 65

Interpretation (Chapter III).

Section 66

Tobacco products.

Section 67

Cider and perry.

Section 68

Wine and made wine.

Section 69

Hydrocarbons.

Section 70

Amendment of section 123 (rates of duty) of Finance Act, 1992.

Section 71

Gaming machine licence duty.

Section 72

Amendment of section 35 (hydrocarbons) of Finance Act, 1981.

Section 73

Duty on beer.

Section 74

Deferment of duty on beer.

Section 75

Deferment of duty on wine and made wine.

Section 76

Application of Article 5.2 of Council Directive No. 92/12/EEC.

Section 77

Spirits retailers' on-licences.

Section 78

Amendment of section 155 (spirits retailers' on-licences) of Finance Act, 1992.

Section 79

Tax clearance in relation to certain excise licences.

Section 80

Repeals and revocations (Chapter III).

PART III

Value-Added Tax

Section 81

Interpretation (Part III).

Section 82

Amendment of section 3 (supply of goods) of Principal Act.

Section 83

Amendment of section 3A (intra-Community acquisition of goods) of Principal Act.

Section 84

Alcohol products.

Section 85

Amendment of section 8 (taxable persons) of Principal Act.

Section 86

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

Section 87

Amendment of section 11 (rates of tax) of Principal Act.

Section 88

Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

Section 89

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

Section 90

Supplies to, and intra-Community acquisitions and imports by, certain taxable persons.

Section 91

Amendment of section 17 (invoices) of Principal Act.

Section 92

Amendment of section 19 (tax due and payable) of Principal Act.

Section 93

Amendment of section 20 (refund of tax) of Principal Act.

Section 94

Amendment of First Schedule to Principal Act.

Section 95

Amendment of Second Schedule to Principal Act.

Section 96

Goods and services chargeable at the rate specified in section 11 (1) (c) of Principal Act.

Section 97

Amendment of Sixth Schedule to Principal Act.

Section 98

Repeal of Seventh Schedule to Principal Act.

Section 99

Amendment of section 113 (use of electronic data processing) of Finance Act, 1986.

PART IV

Stamp Duties

Section 100

Amendment of section 112 (stamp duty on transfers of building land) of Finance Act, 1990.

Section 101

Exemption from stamp duty of certain instruments.

Section 102

Amendment of section 203 (stamp duty in respect of cash cards) of Finance Act, 1992.

Section 103

Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

Section 104

Exchanges.

Section 105

Amendment of section 34 (stamp duty on certain conveyances and transfers) of Finance Act, 1978.

Section 106

Exemption from stamp duty of certain loan capital and securities.

PART V

Residential Property Tax

Section 107

Clearance on sale of certain residential property.

Section 108

Amendment of section 112 (penalties) of Finance Act, 1983.

PART VI

Capital Acquisitions Tax

Chapter I

Taxation of Assets Passing on Inheritance (Probate Tax)

Section 109

Interpretation (Chapter I).

Section 110

Acquisitions by relevant trusts.

Section 111

Application of Principal Act.

Section 112

Exemptions.

Section 113

Computation of tax.

Section 114

Relief in respect of quick succession.

Section 115

Incidence.

Section 116

Payment of tax.

Section 117

Interest on tax.

Section 118

Postponement of tax.

Section 119

Application of section 85 of Finance Act, 1989, and section 133 of Finance Act, 1993.

Chapter II

Miscellaneous Amendments, etc.

Section 120

Interpretation (Chapter II).

Section 121

Amendment of section 5 (gift deemed to be taken) of Principal Act.

Section 122

Amendment of section 6 (taxable gift) of Principal Act.

Section 123

Amendment of section 11 (inheritance deemed to be taken) of Principal Act.

Section 124

Amendment of section 12 (taxable inheritance) of Principal Act.

Section 125

Amendment of section 16 (market value of certain shares) of Principal Act.

Section 126

Amendment of section 90 (arrangements reducing value of company shares) of Finance Act, 1989.

Section 127

Construction of certain references in section 16 of Principal Act for purposes of “specified amount” in section 90 of Finance Act, 1989.

Section 128

Amendment of section 19 (value of agricultural property) of Principal Act.

Section 129

Amendment of section 34 (disposition by or to a company) of Principal Act.

Section 130

Amendment of Second Schedule (computation of tax) to Principal Act.

Section 131

Amendment of section 107 (application of Principal Act) of Finance Act, 1984.

Section 132

Amendment of section 104 (application of Principal Act) of Finance Act, 1986.

Section 133

Exemption of certain policies of assurance.

Section 134

Repeal, etc. (Chapter II).

PART VII

Miscellaneous

Section 135

Capital Services Redemption Account.

Section 136

Repeal of certain reporting provisions relating to national debt.

Section 137

Amendment of section 54 (creation and issue of securities by Minister for Finance) of Finance Act, 1970.

Section 138

Holding and investment of moneys of Post Office Savings Bank Fund, etc.

Section 139

Foreign currency clearing accounts, etc.

Section 140

Amendment of section 242 (tax clearance in relation to certain licences) of Finance Act, 1992.

Section 141

Radio Telefís Éireann levy.

Section 142

Care and management of taxes and duties.

Section 143

Short title, construction and commencement.

FIRST SCHEDULE Amendment of Enactments

PART I

Amendments Consequential on Changes in Rates of Tax

PART II

Amendments Consequential on Changes in Personal Reliefs SECOND SCHEDULE Rates of Excise Duty on Tobacco Products THIRD SCHEDULE Rates of Excise Duty on Cider and Perry FOURTH SCHEDULE Rates of Excise Duty on Wine and Made Wine FIFTH SCHEDULE Enactments Repealed Acts Referred to ACC Bank Act, 1992 1992, No. 6 Appropriation Act, 1965 1965, No. 21 Appropriation Act, 1969 1969, No. 30 Auctioneers and House Agents Act, 1947 1947, No. 10 Betting Act, 1931 1931, No. 27 Building Societies Act, 1989 1989, No. 17 Capital Acquisitions Tax Act, 1976 1976, No. 8 Capital Gains Tax Act, 1975 1975, No. 20 Capital Gains Tax (Amendment) Act, 1978 1978, No. 33 Central Bank Act, 1971 1971, No. 24 Central Bank Act, 1989 1989, No. 16 Companies Act, 1963 1963, No. 33 Companies Act, 1990 1990, No. 33 Companies Acts, 1963 to 1990 Conveyancing Act, 1882 45 & 46 Vict., c. 13 Corporation Tax Act, 1976 1976, No. 7 Customs, Inland Revenue, and Savings Bank Act, 1877 40 & 41 Vict., c. 13 Finance (1909-10) Act, 1910 10 Edw. 7 & 1 Geo. 5, c. 8 Finance Act, 1933 1933, No. 15 Finance Act, 1936 1936, No. 31 Finance Act, 1938 1938, No. 25 Finance Act, 1946 1946, No. 15 Finance Act, 1950 1950, No. 18 Finance Act, 1953 1953, No. 21 Finance Act, 1958 1958, No. 25 Finance Act, 1968 1968, No. 33 Finance Act, 1970 1970, No. 14 Finance Act, 1973 1973, No. 19 Finance Act, 1974 1974, No. 27 Finance Act, 1975 1975, No. 6 Finance Act, 1976 1976, No. 16 Finance Act, 1978 1978, No. 21 Finance Act, 1979 1979, No. 11 Finance Act, 1980 1980, No. 14 Finance Act, 1981 1981, No. 16 Finance Act, 1982 1982, No. 14 Finance Act, 1983 1983, No. 15 Finance Act, 1984 1984, No. 9 Finance Act, 1985 1985, No. 10 Finance Act, 1986 1986, No. 13 Finance Act, 1987 1987, No. 10 Finance Act, 1988 1988, No. 12 Finance Act, 1989 1989, No. 10 Finance Act, 1990 1990, No. 10 Finance Act, 1991 1991, No. 13 Finance Act, 1992 1992, No. 9 Finance (No. 2) Act, 1992 1992, No. 28 Finance (Excise Duties) (Vehicles) Act, 1952 1952, No. 24 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Finance (Miscellaneous Provisions) Act, 1968 1968, No. 7 Gaming and Lotteries Act, 1956 1956, No. 2 Holidays (Employees) Act, 1973 1973, No. 25 Housing (Miscellaneous Provisions) Act, 1979 1979, No. 27 Housing (Miscellaneous Provisions) Act, 1992 1992, No. 18 ICC Bank Act, 1992 1992, No. 21 Income Tax Act, 1967 1967, No. 6 Industrial and Provident Societies Acts, 1893 to 1978 Industrial Development Act, 1986 1986, No. 9 Industrial Development (Amendment) Act, 1991 1991, No. 30 Intoxicating Liquor Act, 1943 1943, No. 7 Intoxicating Liquor Act, 1946 1946, No. 33 Intoxicating Liquor Act, 1953

1953, No. 30 Intoxicating Liquor Act, 1962 1962, No. 21 Ministerial and Parliamentary Offices Act, 1938 1938, No. 38 National Treasury Management Agency Act, 1990 1990, No. 18 Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992 1992, No. 3 Provisional Collection of Taxes Act, 1927 1927, No. 7 Registration of Title Act, 1964 1964, No. 16 Roads Act, 1920 10 & 11 Geo. 5, c. 72 Road Traffic Act, 1933 1933, No. 11 Road Traffic Act, 1961 1961, No. 24 Savings Banks Act, 1904 3 Edw. 7, c. 8 Stamp Act, 1891 54 & 55 Vict., c. 39 Status of Children Act, 1987 1987, No. 26 Succession Act, 1965 1965, No. 27 Superannuation and Pensions Act, 1963 1963, No. 24 Tourist Traffic Act, 1952 1952, No. 15 Trustee Savings Banks Act, 1989 1989, No. 21 Údarás na Gaeltachta Act, 1979 1979, No. 5 Unit Trusts Act, 1990 1990, No. 37 Value-Added Tax Act, 1972 1972, No. 22 Value-Added Tax (Amendment) Act, 1978 1978, No. 34 Number 13 of 1993 FINANCE ACT, 1993 AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [17th June, 1993] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax, Income Levy, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax Amendment of provisions relating to exemption from income tax.

1.—As respects the year of assessment 1993-94 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended— (a) in section 1— (i) by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£7,200” and “£3,600”, respectively, for “£7,000” and “£3,500” (inserted by the Finance Act, 1992 ), and (ii) by the substitution, in paragraph (a) (inserted by the Finance Act, 1991 ) of subsection (3) (inserted by the Finance Act, 1989 ), of “£350” for “£300” in both places where it occurs and of “£550” for “£500”, and (b) in section 2 , by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )— (i) of “£8,200” and “£9,400”, respectively, for “£8,000” and “£9,200” (inserted by the Finance Act, 1992 ), in paragraph (a), and (ii) of “£4,100” and “£4,700”, respectively, for “£4,000” and “£4,600” (inserted by the Finance Act, 1992 ), in paragraph (b), and the said subsection (2), and the said paragraph (a) of subsection (3), of the said section 1 and the said subsection (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £9,400, and (b) in any other case, £4,100:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £4,700.

Alteration of rates of income tax.

2.—(1)

Section 2

of the Finance Act, 1991 , is hereby amended, as respects the year of assessment 1993-94 and subsequent years of assessment, by the substitution of the following Table for the Table to that section: “TABLE

PART I

Part of taxable income Rate of tax Description of rate

(1)

(2)

PART II

Part of taxable income Rate of tax Description of rate

(1)

(2)

(2)

Part I

of the First Schedule shall have effect for the purpose of supplementing subsection (1).

Personal reliefs.

3.—(1) Where a deduction falls to be made from the total income of an individual for the year of assessment 1993-94 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE Statutory provision Amount to be deducted from total income for the year 1992-93 Amount to be deducted from total income for the year 1993-94 and subsequent years

(1)

(2)

(2)

Section 3

of the Finance Act, 1991 , shall have effect subject to the provisions of this section.

(3)

Part II

of the First Schedule shall have effect for the purpose of supplementing subsection (1).

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

4.—

Section 6

of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1993-94, as if in subsection (2)— (a) “1993-94” were substituted for “1982-83”, and (b) “£286” were substituted for “£312” in each place where it occurs.

Amendment of provisions relating to relief in respect of interest.

5.—(1) In this section “the principal sections” means sections 76 (1) and 496 of, and paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 .

(2)

Section 496

of the Income Tax Act, 1967 , is hereby amended, as respects the year 1993-94 and subsequent years of assessment, by the substitution of the following subsection for subsection (2A) (inserted by the Finance Act, 1980 ): “(2A) In relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1993, and notwithstanding the provisions of subsection (1), no repayment of tax shall be made under this section for any year of assessment— (a) in the case of a person who is assessed to tax for the year of assessment in accordance with the provisions of section 194, on the excess of the interest over £5,000, (b) in the case of a widowed person, on the excess of the interest over £3,600, or (c) in any other case, on the excess of the interest over £2,500.”.

(3)

Section 7

of the Finance Act, 1989 , shall not apply or have effect in relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1993, and ending on or before the 5th day of April, 1994.

Provided that for the purposes of calculating the additional relief, if any, which but for the enactment of this subsection would not have been given for a year of assessment, any relief given in accordance with the principal sections in the case of a person who has elected or could be deemed to have duly elected to be assessed to tax in accordance with the provisions of section 194 of the Income Tax Act, 1967 , for any year of assessment shall, notwithstanding any other provision of the Tax Acts, be treated as given equally to the person and that person's spouse for such year of assessment notwithstanding that— (a) section 197 of the Income Tax Act, 1967 , may have applied for that year of assessment, and (b) the payments in respect of which relief is given may not have been made in such proportions.

Amendment of section 11 (restriction of relief to individuals on loans applied in acquiring shares in companies) of Finance Act, 1990.

6.—

Section 11

of the Finance Act, 1990 , is hereby amended by the substitution of the following section for section 11: “11.—Notwithstanding the provisions of section 34 of the Finance Act, 1974 , and section 8 of the Finance Act, 1978 , relief shall not be given under the said section 34 or the said section 8 in respect of any payment of interest on any loan applied in acquiring shares issued— (a) on or after the 20th day of April, 1990 (being shares forming part of the ordinary share capital of a company) if a claim for relief under

Chapter III

of

Part I

of the Finance Act, 1984 , is made in respect of the amount subscribed for those shares, or (b) on or after the 6th day of May, 1993 (being shares forming part of the ordinary share capital of a company) if a claim for relief under section 35 (as amended by the Finance Act, 1993) of the Finance Act, 1987 , is made in respect of the amount subscribed for those shares.”.

Tax treatment of certain severance payments.

7.—(1)

Section 115

of the Income Tax Act, 1967 , is hereby amended by the insertion of the following subsection after subsection (1): “(1A) (a) Paragraph (d) of subsection (1) shall not apply to the following payments, that is to say— (i) a termination allowance payable in accordance with the provisions of section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992 , and any regulations made thereunder, (ii) a severance allowance or a special allowance payable in accordance with the provisions of Part V (inserted by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992 ) of the Ministerial and Parliamentary Offices Act, 1938 , or (iii) a special severance gratuity payable under section 7 of the Superannuation and Pensions Act, 1963 , or any analogous payment payable under or by virtue of any other enactment. (b) (i) Subparagraphs (i) and (ii) of paragraph (a) shall apply and have effect in relation to payments made on or after the 1st day of November, 1992. (ii) Subparagraph (iii) of paragraph (a) shall apply and have effect in relation to payments made on or after the 6th day of May, 1993.”.

Reliefs in respect of tax charged on payments on retirement, etc.

8.—As respects payments made on or after the 6th day of May, 1993, the Income Tax Act, 1967 , is hereby amended— (a) in section 115 (as amended by section 7 )— (i) by the substitution in subsection (3) (including the proviso thereto) of— (I) “not exceeding the basic exemption” for “not exceeding £6,000”, (II) “the amount of the said basic exemption” for “the said sum of £6,000”, and (III) “the amount of the said basic exemption” for “the said sum”, and (ii) by the insertion of the following subsection after subsection (5): “(5A) In this section and in Schedule 3 ‘the basic exemption’ means £6,000 together with £500 for each complete year of the service, up to the relevant date, of the holder in the office or employment in respect of which the payment is made.”, and (b) in Schedule 3— (i) by the substitution in paragraph 3 of “the basic exemption” for “£6,000”, (ii) by the substitution in subparagraph (b) of paragraph 4 of “one-fifteenth” for “one-twentieth”, and (iii) by the substitution in the second proviso to paragraph 6 of “the basic exemption” for “£6,000” in both places where it occurs.

Chapter II

Income Levy Application of section 16 (income levy) of Finance Act, 1983, for 1993-94.

9.—(1) In this section “contribution year” means a year of assessment within the meaning of the Income Tax Acts.

Provided that levy payable pursuant to this section shall not be payable by an employed contributor who, by virtue of section 45 of the Act of 1970, has full eligibility for services under Part IV of that Act,’.”, (c) in paragraph (v) (inserted by the Finance Act, 1984 ) of subsection (2), “the year 1993-94” were substituted for “the year 1983-84 or the year 1984-85”, (d) in the proviso (inserted by the Finance Act, 1984 ), “£173” and “£9,000” were substituted for “£96” and “£5,000”, respectively, and “1993-94” were substituted for “1984-85” in both places where it occurs, and (e) the following additional proviso were inserted after the proviso (inserted by the Finance Act, 1984 ): “Provided also that— (a) where an individual proves to the satisfaction of the Revenue Commissioners that his reckonable income for the contribution year 1993-94 did not exceed £9,000 any levy deducted from emoluments forming part of that reckonable income shall be repaid to that individual and for the purposes of such repayment the levy shall be deemed to be income tax: (b) where income levy is payable for the contribution year 1993-94 in respect of reckonable income other than emoluments, the provisions of section 18

Chapter III

Taxation of Married Persons Taxation of married persons.

10.—(1) As respects the year of assessment 1994-95 and subsequent years of assessment, the Income Tax Act, 1967 , is hereby amended, in Chapter I of Part IX, by the insertion of the following sections after section 195A (inserted by the Finance Act, 1983 ): “Assessment on either spouse.

195B.—(1) In this section— ‘the basis year’, in relation to a husband and wife, means the year of marriage or, if earlier, the latest year of assessment preceding that year of marriage for which details of the total incomes of both the husband and the wife are available to the inspector at the time they first elect, or are first deemed to have duly elected, to be assessed to tax in accordance with the provisions of section 194; ‘year of marriage’ has the same meaning as it has in section 195A (inserted by the Finance Act, 1983 ).

Repayment of tax in the case of certain husbands and wives.

195C.—(1) This section applies, for a year of assessment, in the case of a husband and wife, one of whom is assessed to tax for such year of assessment in accordance with the provisions of section 194 and to whom section 197 does not apply for such year.

Provided that this subsection shall not apply where a repayment, which but for the provisions of this subsection would not be made to a spouse, is less than £20.

Chapter IV

Taxation of Savings and Investment Amendment of Part III (special classes of companies) of Corporation Tax Act, 1976.

11.—

Part III

of the Corporation Tax Act, 1976 , is hereby amended as follows, as respects accounting periods ending on or after the 1st day of February, 1993, for the purposes of paragraph (f), and as respects accounting periods ending on or after the 1st day of January, 1993, for the purposes of the other paragraphs of this section: (a) in subsection (1A) (inserted by the Finance Act, 1986 ) of section 33— (i) by the substitution for paragraphs (b) and (c) of the following paragraphs: “(b) general annuity business, (c) special investment business, and (d) life assurance business (excluding such pension business, general annuity business and special investment business),”, and (ii) by the insertion after “class of business” of “as if it were the only business of the company”, (b) in subsection (2) of section 33— (i) by the insertion after “charged to tax” of “at the rate specified in section 1

33B.—(1) Sections 2 and 83 (4) (as amended by section 38 of the Finance Act, 1992 ) shall not have effect as respects a distribution received by an assurance company, in connection with that part of its life business the profits of which are charged to corporation tax otherwise than under Case I or Case IV of Schedule D; and the income represented by the distribution shall be equal to the aggregate of the amount of the distribution and the amount of the tax credit in respect of the distribution.

35A.—(1) For the purpose of computing corporation tax on chargeable gains accruing to a fund or funds maintained by an assurance company in respect of its life business— (a) (i) section 3 of the Capital Gains Tax (Amendment) Act, 1978 , and (ii) section 19 of the Capital Gains Tax Act, 1975 , as it applies to assets specified in that section or in any other provision of the Capital Gains Tax Acts, shall not have effect, and (b) paragraph 14 of Schedule 1 to the Capital Gains Tax Act, 1975 , shall, as respects— (i) subparagraphs (1) and (2), and (ii) subparagraph (3), in so far as a chargeable gain is not thereby disregarded for the purposes of that subparagraph, apply as if section 12 of the Finance Act, 1993, subsection (8) (a) of section 36A (inserted by that Act), section 46A (as amended by that Act) and paragraph (a) (ii) had not been enacted.

36A.—(1) In this section— ‘excluded shares’ means— (a) shares in an investment company within the meaning of Part XIII of the Companies Act, 1990 , (b) shares in an undertaking for collective investment in transferable securities within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 ), or (c) shares in a company being shares the market value of which may be expected to approximate at all times to the market value of the proportion of the assets of the company which they represent; ‘inspector’, in relation to any matter, means an inspector of taxes appointed under section 161 of the Income Tax Act, 1967 , and includes such other officers as the Revenue Commissioners shall appoint in that behalf; ‘mortality cover’ means any amount payable under a policy of life assurance in the event of the death of a person specified in the terms of that policy; ‘ordinary shares’ means shares forming part of a company's ordinary share capital; ‘qualifying shares’ means ordinary shares— (a) in a company which is resident in the State, or (b) (i) which are listed in the official list of the Irish Stock Exchange, or (ii) dealt in on the smaller companies market, or the unlisted securities market, of the Irish Stock Exchange, other than excluded shares; ‘special investment business’ means so much of the life business of an assurance company as is connected with special investment policies; ‘special investment fund’ means a fund in respect of which the conditions specified in subsection (2) are satisfied; ‘special investment policy’ means a policy of life assurance, issued by an assurance company to an individual on or after the 1st day of February, 1993, in respect of which— (a) the conditions specified in subsection (3) are satisfied, and (b) a declaration of the kind specified in subsection (4) has been made to the assurance company; ‘specified qualifying shares’, in relation to a special investment fund, means qualifying shares in a company the issued share capital of which has a market value of less than £100,000,000 when the shares are acquired for the fund.

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of the Finance Act, 1984 , in qualifying companies, within the meaning aforesaid, shall not be chargeable gains; (c) section 33B (inserted by the Finance Act, 1993) shall not apply to distributions in respect of the shares mentioned in paragraph (b); and (d) section 43 shall not have effect.

Transfer of assets.

36B.—Where an assurance company transfers the whole or part of an asset (any interest in or rights over an asset being regarded for the purposes of this section as part of the asset)— (a) which it owned prior to the transfer or which was created by the transfer, into, or (b) which it owns after the transfer, out of, its special investment fund, the company shall be deemed to have disposed of and immediately reacquired the asset or part, as the case may be, at the market value of the asset or part, as the case may be, at the time of the transfer.

Special investment policies: breach of conditions.

36C.—(1) For the purposes of this section, a policy of life assurance held by an individual, whether married or not, shall not be a special investment policy at any particular time if— (a) as respects the policy— (i) a declaration of the kind specified in subsection (4) of section 36A has not been made, or (ii) any of the conditions referred to in subsection (3) of section 36A is not satisfied, at that time, or (b) as respects the individual, he has at that time a beneficial interest prohibited by section 16 of the Finance Act, 1993, in classes of investment mentioned in paragraphs (a), (b), (c) and (d) of subsection (1) of that section.

46.—Where an overseas life assurance company— (a) receives a distribution from a company resident in the State, and (b) is not entitled to, or disclaims, by notice in writing to the appropriate inspector, within the meaning of section 9

Provided that, for the purposes of this section, in applying paragraph 6 of Part I of Schedule 1 to the Capital Gains Tax Act, 1975 , to the computation of gains accruing to an assurance company on the disposal, on the day on which an accounting period of the company ends, of assets which are not linked solely to life assurance business (excluding pension business, general annuity business or special investment business), the company shall be deemed to have acquired all of the assets of its life business fund, other than the assets it acquired in that accounting period, at their respective market values on the day immediately before the day on which that period began.”, (iii) in subsection (4) (a) (i), by the substitution for “(excluding pension business and general annuity business)” of “(excluding pension business, general annuity business and special investment business), special investment business”, (iv) in subsections (4) (b) (i) (I) and (5) (a), by the insertion after “foreign life assurance business” of “or special investment business”, and (v) by the substitution for subsections (6) and (7) of the following subsection: “(6) For the purposes of this section assets of the foreign life assurance fund or special investment fund and liabilities of the foreign life assurance business or special investment business shall be left out of account in determining the investment reserve.”, (k) in section 50— (i) by the substitution for subsection (1) of the following subsection: “(1) This section has effect for the interpretation of sections 33 to 49, including sections 46A and 46B (inserted by the Finance Act, 1992 ) and sections 33B, 35A, 36A, 36B and 36C (inserted by the Finance Act, 1993), and this section.”, and (ii) in subsection (2), by the insertion of the following definitions: “‘market value’ has the meaning assigned to it by section 49 of the Capital Gains Tax Act, 1975 ;”, “‘special investment business’, ‘special investment fund’ and ‘special investment policy’ have the meanings assigned to them by section 36A;”, and the said— (A) subsection (1A) (other than the proviso thereto) and subsection (2) of section 33, (B) paragraph (a) of subsection (5) of section 36, (C) subsections (1) and (3) of section 43, and (D) subparagraph (i) of paragraph (a), and clause (I) of subparagraph (i) of paragraph (b), of subsection (4), and paragraph (a) of subsection (5), of section 46A, as so amended, are set out in the Table to this section.

TABLE (1A) Where the life assurance business of an assurance company includes more than one of the following classes of business, that is to say: (a) pension business, (b) general annuity business, (c) special investment business, and (d) life assurance business (excluding such pension business, general annuity business and special investment business), then, for the purposes of this Act, the business of each such class shall be treated as though it were a separate business and subsection (1) shall apply separately to each such class of business as if it were the only business of the company:

For the purposes of this subsection— (a) any tax credit to which the company is entitled in respect of a distribution received by it shall be treated as an equivalent amount of corporation tax borne or paid in respect of that distribution; and (b) any payment in respect of that credit under section 15 (4), 25 (set-off of losses etc. against franked investment income), 26 (set-off of loss brought forward or terminal loss against franked investment income of financial concerns), 33B(2) (inserted by the Finance Act, 1993) or 88 (3) shall be treated as reducing the tax so treated as borne or paid; and (c) relief for the management expenses, if any, attributable to the life business, other than special investment business of a company shall be withheld before any relief for management expenses attributable to the special investment business of the company is withheld; and (d) (i) sections 34 (2), 35 and 38 shall, and (ii) the proviso (inserted by the Finance Act, 1993) to subsection (5) of section 16 shall not, apply for the purposes of computing the profits of the life assurance business or the industrial assurance business, as the case may be, which would have been charged to tax under Case I of Schedule D.

The reference in paragraph 2 (1) of Schedule 1 to the Capital Gains Tax Act, 1975 (exclusion from consideration for disposal of sums chargeable to income tax), to computing income or profits or gains or losses shall not be taken as applying to a computation of a company's income for the purposes of this subsection.

Life assurance companies: transitional provisions.

12.—(1) For the purposes of computing the liability of an assurance company to corporation tax in respect of its life business, where an accounting period of the company begins before the 1st day of January, 1993, and ends on or after that day, it shall be divided into two parts, one beginning on the day on which the accounting period begins and ending on the 31st day of December, 1992, and the other beginning on the 1st day of January, 1993, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company.

Provided that, in computing the chargeable gain on a disposal which is deemed to have been made by virtue of this paragraph— (i) subsection (1) of section 3 of the Capital Gains Tax (Amendment) Act, 1978 , shall apply as if, in subsection (3) of that section, paragraph (b) were deleted, and (ii) if the disposal would not have been deemed to have been made apart from this paragraph, the said section 46A shall apply to that disposal as if the proviso to subsection (3) were deleted. (b) Notwithstanding section 36 (as amended by section 11 ) of the Corporation Tax Act, 1976 , where chargeable gains and allowable losses accrue on disposals, deemed by virtue of the said section 46A, as applied by paragraph (a), to have been made by a life assurance company, the amount of any fraction of the difference between the aggregate of such chargeable gains and the aggregate of such allowable losses which is treated by virtue of the said section 46B as a chargeable gain of an accounting period ending on or after the 1st day of January, 1993, shall be deducted from the amount of the unrelieved profits (within the meaning of the said section 36) of the accounting period for the purposes of computing the relief due to the company under the said section 36.

Special investment schemes.

13.—(1) (a) In this section “inspector”, “ordinary shares”, and “qualifying shares” have the meanings assigned to them by section 36A (inserted by this Act) of the Corporation Tax Act, 1976 ; “authorised unit trust scheme” means a unit trust scheme which is, or is deemed to be, an authorised unit trust scheme within the meaning of the Unit Trusts Act, 1990 , and which has not had its authorisation under that Act revoked; “market value” has the meaning assigned to it by section 49 of the Capital Gains Tax Act, 1975 ; “special investment scheme” means an authorised unit trust scheme in respect of which the conditions specified in subsection (2) are satisfied; “special investment units” means units, sold to an individual on or after the 1st day of February, 1993, by the management company or trustee under an authorised unit trust scheme, in respect of which— (a) the conditions specified in subsection (3) are satisfied, and (b) a declaration of the kind specified in subsection (4) has been made to the management company or trustee; “specified qualifying shares”, in relation to a special investment scheme, means qualifying shares in a company which, when the shares are acquired for the scheme, has an issued share capital the market value of which is less than £100,000,000; “units”, in relation to an authorised unit trust scheme, means any units (whether described as units or otherwise) into which are divided the beneficial interests in the assets subject to any trust created under the scheme. (b) A reference in this section to the management company or trustee under an authorised unit trust scheme shall be construed as a reference to the person in whom are vested the powers of management relating to property for the time being subject to any trust created in pursuance of the scheme or, as the case may be, to the person in whom such property is or may be vested in accordance with the terms of the trust.

Provided that a special investment scheme shall continue to be treated as a collective investment undertaking within the meaning of the said section 18 for the purposes of— (i) paragraph (i) (gg) of the First Schedule to the Value-Added Tax Act, 1972 , and (ii) section 206 (a) of the Finance Act, 1992 . (b) Notwithstanding any other provision of the Tax Acts or the Capital Gains Tax Acts— (i) income tax shall be chargeable at the standard rate in respect of income arising to a special investment scheme, and such income shall not be charged to an additional duty of income tax under section 13 of the Finance Act, 1976 , and (ii) capital gains tax shall be chargeable at the rate specified in section 3

Provided that— (I) any income tax or capital gains tax so chargeable shall be reduced so that the amount of such tax, before it is reduced by any credit, relief or other deduction under the Tax Acts or the Capital Gains Tax Acts apart from this section, is 10 per cent of income arising or chargeable gains accruing, as the case may be, to the scheme, and (II) only so much of income arising or gains accruing to the scheme shall be chargeable to income tax or capital gains tax, as the case may be, as is, or is to be— (A) paid to, or (B) accumulated or invested for the benefit of, holders of special investment units or as would be so paid, accumulated or invested if any gains accruing to the scheme by virtue of subsection (8) were gains on an actual disposal of the assets concerned.

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of the Finance Act, 1986 , shall apply to a deposit, within the meaning of the Chapter, for the time being subject to any trust created in pursuance of a special investment scheme as if such a deposit were not a relevant deposit, within the meaning of the Chapter.

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of the Finance Act, 1984 , in qualifying companies, within the meaning aforesaid, shall not be chargeable gains:

Provided that, as respects paragraph 14 of Schedule 1 to the Capital Gains Tax Act, 1975 — (I) subparagraphs (1) and (2), and (II) subparagraph (3), in so far as a chargeable gain is not thereby disregarded for the purposes of that subparagraph, shall apply as if subparagraphs (i) and (iii) had not been enacted. (b) Where in a year of assessment the management company or trustee under a special investment scheme incurs allowable losses on disposals or deemed disposals of assets subject to any trust created in pursuance of the scheme, the amount, if any, by which the aggregate of such allowable losses exceeds the aggregate of chargeable gains on such disposals in the year of assessment, shall be— (i) disregarded for the purposes of subsection (1) of section 5 of the Capital Gains Tax Act, 1975 , (ii) treated as reducing the income chargeable to incometax arising to the scheme in that year of assessment, and (iii) to the extent that it is not treated as reducing income arising to the scheme in the said year of assessment, treated, for the purposes of the Capital Gains Tax Acts and this paragraph, as an allowable loss incurred in the next subsequent year of assessment on a disposal of an asset subject to a trust created in pursuance of the scheme.

Provided that, notwithstanding subsection (7) or section 88 of the Corporation Tax Act, 1976 , the tax credit in respect of a distribution to which this paragraph applies shall be disregarded for all the purposes of the Tax Acts and the Capital Gains Tax Acts. (b) Notwithstanding section 27 of the Finance Act, 1984 , the Revenue Commissioners shall not designate a special investment scheme for the purposes of

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of the said Act. (c) In this subsection “eligible shares” means eligible shares, within the meaning of

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of the Finance Act, 1984 , in qualifying companies, within the meaning aforesaid.

Section 32

of the Capital Gains Tax Act, 1975 , shall not apply to a special investment scheme or the disposal of special investment units, and (ii) no chargeable gain shall accrue on the disposal of, or of an interest in, special investment units. (c) Notwithstanding any provision of the Income Tax Acts or the Capital Gains Tax Acts, the holder of special investment units of a special investment scheme, shall not be entitled to any credit for, or payment of, any income tax or capital gains tax paid in respect of income arising to, or capital gains accruing to, the scheme.

Special portfolio investment accounts.

14.—(1) (a) In this section— “designated broker” means a person— (i) which is a dealing member firm of the Irish Stock Exchange, and (ii) which has sent to the Revenue Commissioners a notification of its name and address and of its intention to accept specified deposits; “gains” means chargeable gains within the meaning of the Capital Gains Tax Acts including gains which would, but for the provisions of section 19 of the Capital Gains Tax Act, 1975 , be chargeable gains; “market value” has the meaning assigned to it in section 49 of the Capital Gains Tax Act, 1975 ; “ordinary shares”, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital in respect of which the holders have a right to a dividend at a fixed rate but have no other right to share in the profits of the company; “qualifying shares” means ordinary shares in a company which are— (i) listed in the official list of the Irish Stock Exchange, or (ii) dealt in on the smaller companies market, the unlisted securities market or the exploration securities market of the Irish Stock Exchange, other than— (I) shares in an investment company within the meaning of Part XIII of the Companies Act, 1990 , (II) shares in an undertaking for collective investment in transferable securities within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 ), or (III) shares in a company being shares the market value of which may be expected to approximate at all times to the market value of the proportion of the assets of the company which they represent; “relevant income or gains” means the aggregate of the income and gains, including losses, arising from relevant investments:

Provided that only so much of income arising to or gains accruing to the special portfolio investment account shall be relevant income or gains as is or is to be— (i) paid to, or (ii) accumulated or invested for the benefit of, the individual in whose name the special portfolio investment account is held, or would be so paid, accumulated or invested if any gains accruing to the account in accordance with paragraph (c) of subsection (4) were gains on an actual disposal of the assets concerned; “relevant investment” means an investment in— (i) qualifying shares and specified qualifying shares, or (ii) qualifying shares, specified qualifying shares and securities, as the case may be, acquired by a designated broker by the expenditure of money contributed by way of a specified deposit, and held by a designated broker in a special portfolio investment account; “securities” means securities— (i) issued under the authority of the Minister for Finance, or (ii) issued by the Electricity Supply Board, Radio Telefís Éireann, the Industrial Credit Corporation public limited company, Bord Telecom Éireann, Irish Telecommunications Investments public limited company, Córas Iompair Éireann, ACC Bank public limited company, Bord na Móna, Aerlínte Éireann cuideachta phoiblí theoranta, Aer Lingus public limited company, or Aer Rianta cuideachta phoiblí theoranta, which are listed in the official list of the Irish Stock Exchange; “special portfolio investment account” means an account, opened on or after the 1st day of February, 1993, in which a relevant investment is held and in respect of which the conditions referred to in subsection (1) (c) are complied with; “specified deposit” means a sum of money paid by an individual to a designated broker for the purpose of acquiring assets which will form part of a relevant investment; “specified qualifying shares”, in relation to a special portfolio investment account, means qualifying shares in a company which, when the shares are acquired for the account, has an issued share capital the market value of which is less than £100,000,000. (b) For the purposes of this section,

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of the Finance Act, 1986 , shall be construed and have effect— (i) as if references to “deposit”, “interest”, “relevant deposit”, “relevant deposit taker”, “relevant interest” and “special savings account” were, respectively, references to “specified deposit”, “income or gains”, “relevant investment”, “designated broker”, “relevant income or gains” and “special portfolio investment account” as defined in paragraph (a), and (ii) as if subsections (4) and (5) of section 33 had not been enacted. (c) Notwithstanding subsection (3), section 37A (inserted by the Finance Act, 1992 , and amended by this Act) of the Finance Act, 1986 , shall apply to a special portfolio investment account— (i) as if paragraphs (b), (c), (cc), (d) and (e) of subsection (1) of that section had not been enacted, and (ii) as if the conditions in subsection (2) of this section had been included in the said subsection (1).

(II) paragraphs (d) to (g), the amount of the consideration given for shares shall be determined in accordance with the provisions of section 9 of the Capital Gains Tax Act, 1975 , and paragraph 4 of Schedule 1 to the Capital Gains Tax (Amendment) Act, 1978 .

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of the Finance Act, 1986 , shall, subject to the provisions of this section and with any other necessary modifications, apply to special portfolio investment accounts as they apply to special savings accounts.

Provided that— (i) this paragraph shall apply with effect from the 5th day of April, 1994, and (ii) the year of assessment 1993-94 shall, for the purposes of the paragraph, be deemed to be the period from the 1st day of February, 1993, to the said 5th day of April, 1994; (d) subject to subsection (5), where in a year of assessment the relevant income or gains of a special portfolio investment account includes a distribution from a company resident in the State, the aggregate of the amount or value of that distribution and the amount of the tax credit in respect of the distribution shall be taken into account in computing the relevant income or gains for that year of assessment and the designated broker may set the tax credit against appropriate tax payable in respect of that special portfolio investment account for the year of assessment in which the distribution is made and, where the tax credit exceeds that appropriate tax, may claim to have the excess paid to him in his capacity as the designated broker for that special portfolio investment account; (e) a tax credit in respect of a distribution to which paragraph (d) applies shall not be available for any purpose other than that specified in that paragraph; (f) capital gains tax shall not be chargeable on the disposal of assets held as part of a relevant investment but this paragraph shall not prevent any such disposals from being taken into account in computing the amount of relevant income or gains on which appropriate tax is payable.

Provided that, notwithstanding the provisions of paragraph (d) of subsection (4) or section 88 of the Corporation Tax Act, 1976 , the tax credit in respect of a distribution to which this subsection applies shall be ignored for all the purposes of the Tax Acts and the Capital Gains Tax Acts. (c) In this subsection— “eligible shares” has the same meaning as it has in section 12

Provided that where there are no such funds or insufficient funds available out of which the designated broker may satisfy the appropriate tax, the amount of such tax shall be an amount due to the designated broker from the person beneficially entitled to the relevant investment. (b) This subsection shall apply with effect from the 5th day of April, 1994, and, for the purposes of this subsection, the year of assessment 1993-94 shall be deemed to be the period from the 1st day of February, 1993, to the said 5th day of April, 1994. (c) For the purposes of this section, section 33 of the Finance Act, 1986 , shall apply and have effect for the year 1993-94 and for each subsequent year of assessment as if, in subsection (2) of that section, for “within 15 days from the end of the year of assessment” there were substituted “on or before the 1st day of November following that year of assessment”.

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of the Finance Act, 1984 , shall not apply or have effect in relation to any shares which form part of a relevant investment.

Amendment of provisions relating to interest payments by certain deposit takers.

15.—(1)

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of the Finance Act, 1986 , is hereby amended— (a) in subsection (1) of section 31— (i) by the substitution of the following definition for the definition of “building society”: “‘building society’ means a building society within the meaning of the Building Societies Act, 1989 , or a society established in accordance with the law of any other Member State of the European Economic Community which corresponds to that Act;”, (ii) by the insertion, with effect as on and from the 3rd day of December, 1990, in paragraph (a) of the definition of “relevant deposit” of the following subparagraph after subparagraph (ia) (inserted by the Finance Act, 1991 ): “(ib) the State acting through the National Treasury Management Agency,”, (iii) in the definition of “relevant deposit taker”— (I) by the substitution of the following paragraph for paragraph (a): “(a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971 , or a person who holds a licence or other similar authorisation under the law of any other Member State of the European Economic Community which corresponds to a licence granted under the said section 9,”, and (II) by the insertion, with effect as on and from the 30th day of October, 1992, of the following paragraph after paragraph (e): “(ee) ICC Investment Bank Limited,”, (b) in subsection (1) (as amended by the Finance Act, 1992 ) of section 35, by the substitution of the following paragraphs for paragraph (c): “(c) the amount of any payment of relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D and under no other Case or Schedule and shall be taken into account in computing the total income of the person entitled to that amount, but, in relation to such a person (being an individual)— (i) except for the purposes of a claim to repayment under section 39 (2), the specified amount within the meaning of section 1 or 2 of the Finance Act, 1980 , and (ii) the part of taxable income on which he is charged to income tax at the standard rate, shall, as respects the year of assessment for which he is to be charged to income tax in respect of the relevant interest, be increased by the amount of that payment, and (cc) section 4 of the Finance Act, 1974 , shall have effect as if a reference to appropriate tax deductible by virtue of this Chapter were contained in paragraph (a) of that section.”, and (c) in section 37A (inserted by the Finance Act, 1992 )— (i) by the insertion, in subsection (1), of the following paragraph after paragraph (c):

“(cc) all moneys held in the account shall be subject to the same terms;”, and (ii) by the substitution of the following subsection for subsection (4): “(4) Section 35 shall apply and have effect in relation to any relevant interest paid in respect of any relevant deposit held in a special savings account as if the following paragraph were substituted for paragraph (c) of subsection (1): ‘(c) the amount of any payment of relevant interest (being relevant interest paid in respect of any relevant deposit held in a special savings account) shall not, except for the purposes of a claim to repayment under section 39 (2) in respect of the appropriate tax deducted from such relevant interest, be reckoned in computing total income for the purposes of the Income Tax Acts,’.”.

Limits to special investments.

16.—(1) An individual shall not at the same time have a beneficial interest in investments of more than one of the following classes of investment— (a) special savings accounts within the meaning of section 31 (1) (as amended by the Finance Act, 1993) of the Finance Act, 1986 (such an account being referred to subsequently in this section as “a special savings account”); (b) special investment policies within the meaning of section 36 A (1) (inserted by section 11 ) of the Corporation Tax Act, 1976 ; (c) special investment units within the meaning of section 13 ; (d) special portfolio investment accounts within the meaning of section 14 :

Provided that— (i) an individual, whether married or not, who does not have a joint interest in an investment of a class mentioned in this subsection may have a beneficial interest, that is not a joint interest, in two such investments, being a special savings account and an investment of a class mentioned in paragraph (b), (c) or (d), during a period throughout which— (I) as respects the special savings account, the condition specified in section 37A (1) (e) (inserted by the Finance Act, 1992 ) of the Finance Act, 1986 , would be satisfied if “£25,000” were substituted for “£50,000” in the said paragraph (e), and (II) as respects the other investment, the condition specified in section 36A (3) (b) (inserted by section 11 ) of the Corporation Tax Act, 1976 , or section 13

Undertakings for collective investment.

17.—(1) (a) In this section and section 18 — “chargeable period” means an accounting period of an undertaking for collective investment which is a company or, as respects such an undertaking which is not a company, a year of assessment; “designated assets” means— (i) land, or (ii) shares in a company resident in the State which are not shares— (I) listed in the official list, or (II) dealt in on the smaller companies market, or the unlisted securities market, of the Irish Stock Exchange; “designated undertaking for collective investment” means an undertaking for collective investment which, on the 25th day of May, 1993, owned designated assets for which it gave consideration (determined in accordance with section 9 of the Capital Gains Tax Act, 1975 ) the aggregate of which is not less than 80 per cent. of the aggregate of the consideration (as so determined) which it gave for the total assets it owned at that date; “distribution” has the same meaning as it has for the purposes of the Corporation Tax Acts; “guaranteed undertaking for collective investment” means an undertaking for collective investment all of the issued units of which, on the 25th day of May, 1993, are units in respect of each of which the undertaking will make one payment only, being a payment— (i) to be made on a specified date in cancellation of those units, and (ii) which is the aggregate of— (I) a fixed amount, and (II) an amount, which may be nil, determined by a stock exchange index or indices; “relevant Regulations” means the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 ); “undertaking for collective investment”, subject to paragraph (b), means— (i) a unit trust scheme, other than— (I) a special investment scheme within the meaning of section 13 , or (II) a unit trust mentioned in section 31